Chancellor Rachel Reeves has unveiled plans for a new Scale-up Unit for innovative financial services firms in the UK.

HM Treasury said the new unit, which will be jointly led by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), will support firms in scaling up, investing and creating high-skilled jobs.

During a speech at a conference of regulators and business leaders in Leeds, Reeves explained that scaling banks and insurers will be given "bespoke support" to navigate regulation, one of the key barriers to them growing and investing.

The unit is designed to give businesses a clear point of contact with the regulators, making it simpler for firms to get timely responses to regulatory queries and access expert support.

It will also work with other scaling financial services firms like FinTechs from early next year.

The finance ministry added that the plans will "help unlock the investment needed to plug the £2 billion FinTech scale-up funding gap", which was cited in Sir Ron Kalifa’s 2021 Review of the FinTech sector.

The UK currently has over 3,000 FinTechs, employing over 75,000 people nationwide, and attracting over $3.6 billion in investment last year.

To further tackle the funding gap, the City of London Corporation and the British Business Bank are working together to facilitate greater access to finance and commercial opportunities for fast-growing FinTech firms as part of the Financial Services Growth and Competitiveness Strategy.

“I am proud to be back in Leeds, home to the second largest financial services centre in the UK, to launch our new Scale-up Unit – which will super charge the growth of some of our most innovative companies," said Reeves. "But the vast number of rules make life complicated for these businesses.

"We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, boost growth, and build an economy that works for, and rewards, working people.”

Chief executive of the PRA Sam Woods said that the new unit will encourage a "dynamic, competitive landscape" in financial services.

Hiroki Takeuchi, chief executive of GoCardless said: "Accessing clear regulatory guidance is a key hurdle for FinTechs bringing new innovations to market. Streamlining the process will make it easier for firms like GoCardless to concentrate on serving customers and accelerating our growth plans, including our new ‘Northern Hub’ office in Leeds."

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